Fed rate hike remains uncertain after Harvey, Irma

Fed rate hike remains uncertain after Harvey, Irma

"This could come in multiple forms such as the Fed's economic projections, statement and also Fed chair Yellen's testimony". However, the central bank maintained an upbeat view on the economy and affirmed its intention to raise rates four times by the end of next year, including one hike by the end of this year. However low inflation remains a concern, with Yellen admitting the Fed does not fully understand why price growth hasn't picked up pace, still well short of the central bank's two-percent target. The move will gradually increase long-term borrowing rates. While the decision to shrink the Fed's balance sheet is much expected, when and how the Fed will manipulate its target for short-term interest rates is less clear. That is not very certain, but it is versus just a 37% chance just a month earlier.

Three rounds of QE from 2008 saw the Fed buy up US Treasury bonds and mortgage-backed securities in the hope that the sellers - mostly financial services firms such as banks - would use the proceeds to bolster the US economic recovery through investment and lending.

"Growth likely will bounce back", she said. Johnson Controls rose 3 percent and American Airlines rose 2.3 percent.

As a result, the assets on the Fed's balance sheet ballooned to $4.5 trillion from less than 1 trillion before the recession.

"We feel the economy is performing well and we have confidence in the outlook", Ms Yellen said. FedEx climbed $4.91, or 2.3%, to $220.91. Copper held steady at $2.97 a pound. That will reduce the Fed's holdings by $10 billion.

Yellen likely has not forgotten the so-called taper tantrum of 2013.

Rohingya Muslims a security threat, says Centre to Supreme Court
In a report, United Nations investigators said such violations may have constituted crimes against humanity. Countries across the region fear they will feel the fallout from the crisis.

The precious metal remained cautious ahead of US Federal Reserve's two-day monetary policy meeting starting on Tuesday.

Now the question for the Fed, then, is how it handles interest rates when half of its mandate is a black box and it is engaging in balance sheet policy experiments on the fly.

However, the Fed has turned more upbeat over the economic environment otherwise. Sources told Reuters on Sunday that Japanese Prime Minister Shinzo Abe was considering calling a snap election for as early as next month to take advantage of his improved approval ratings and disarray in the main opposition party.

One potential complication is that Yellen's term as chairperson comes to an end in 2018.

Oil prices rose after Iraq's oil minister said Organization of the Petroleum Exporting Countries producers and others were considering extending a supply cut, and after data showed USA crude stocks were lower than expected. Another complication is that Vice Chair Stanley Fischer recently announced his retirement in October of this year to personal reasons. Both of them were appointed by former President Barack Obama.

"She wants to communicate as little new information as possible", said Wright, a former New York Fed economist, making the point that the FOMC will see three more months of data before its meeting in December.